NovoStent Completes Second Close Raising a Total of $12.75 Million in New Financing

NovoStent Corporation, a medical device company that has developed a novel "anchored" helical stent technology to provide a wide range of vascular therapies, announced today a final closing of its second round of financing, raising an additional $3.1 million for a total of $12.75 million. The Company closed on $9.65 million in May 2005. The financing was led by Sanderling Ventures, and included Montreux Equity Partners, Forward Ventures, Mitsui & Co. Venture Partners, The Band of Angels Fund and Peninsula Equity Partners.

"We are pleased to add Forward Ventures and Mitsui & Co. Venture Partners in this final closing of our second round of funding," said Michael Hogendijk, NovoStent's President and founder. "This additional capital will allow us to develop more robust human data as we determine the Company's strategic direction." Hogendijk also added, "The capital available for follow-on financing from this impressive syndicate allows us to consider the many applications of our platform technology."

Timothy Mills, PhD of Sanderling Ventures, and Howard Palefsky of Montreux have joined Chairman Paul Quadros of Tenex Greenhouse Ventures and Mr. Hogendijk on the NovoStent Board of Directors. Tenex Greenhouse Ventures led the Company's seed round which closed in September, 2003 and included The Band of Angels Fund as well as individual investors from the Band of Angels, Tenex Medical Investors and the Sacramento Angels.

NovoStent's unique stent and integrated delivery system provides easy deployment and accurate zeroforeshortening delivery. The Company's proprietary "anchor" and helical stent platform offers superior durability, flexibility and compression resistance. These features will be initially demonstrated in the superficial femoral artery (SFA) during the Company's first human trial scheduled to start in 2006.